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Tuesday, January 4, 2011

Tuesday 1/4/2010

I am writing this about 3:15pm, after falling asleep this morning due to boredom!.

The Dow is up 9 points, but all the rest of the indexes, including the Transports and the SPX are off .  All the action today is in the PM's and Oil.  Crude is trading 89.23, down 2.32, Gold trading at 1,380.9, donw a big $42, and Silver at 29.78, down 1.35.  Either the top is in place, or we will soon be looking at another buying opportunity.


The Euro is off a little at 1.33 and the Dollar is up, trading currently at 79.19.  The surprise here is the weakness in the debt markets, with the long bond down, at 4.43% and the 10 year at 3.35%.  I am going to have to go back to correlation school, and I don't understand what I am seeing.

The minutes of the FOMC have been released......and they continue to offer their observation regarding the markets.  " members agreed that only small changes were necessary to reflect the modest improvement in the near-term economic outlook".  After 2 years of 0% interest rates, 2+ Trillion in Federal Stimulus spending, and 1.5 Trillion in Fed QE, the economy is still not recovered sufficiently to operate with out government intervention.  I am glad I don't have to wander about, looking for that "recovery" that is propelling the equity markets.....the Fed is telling us that it is not there!

We have earlier issued a Trading Alert to SELL the long position in USO as the market .  Momentum has flipped and we are out at 38.06, taking a $2.81 profit.

The rest of our positions are still active.

Best to your trading.

Bill

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